the business of influence – esomar 3d digital dimensions conference 2011

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The Business of Influence

Philip Sheldrakewww.philipsheldrake.com

@sheldrake

Author of The Business of Influence: Reframing Marketing and PR for the Digital Age, Wiley, 2011

www.influenceprofessional.com

Founding Partner, Meanwhile

www.andmeanwhile.com

http://www.philipsheldrake.com/

http://twitter.com/sheldrake

http://twitter.com/sheldrake

http://www.influenceprofessional.com/

http://www.andmeanwhile.com/

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The business of influence is broken

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/87055500


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You have been influenced when

you think in a way you wouldn’t

otherwise have thought, or do something you

wouldn’t otherwise have done




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If you’re in business, indeed any type of organization, then you’re in the business of

influence



… marketing, advertising, public relations, internal communications, public affairs, customer service, customer

relationship management, social media, copywriting and content, SEO, branding, branded apps and widgets, brand

journalism …

… web design, graphic design, direct marketing, packaging, merchandising, promotion, publicity, events, sponsorship, sales and sales promotion, marketing and market research, product

and service design and development …

… human resources, training and development, channel management, procurement and supplier management, facilities

management …


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3 things


//The rise of social media

//The info tech explosion

//The way we contemplate, design,

communicate and execute strategy


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//The rise of social mediaONE

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An illustrated history


http://youtu.be/wp2eUSL4oHc

http://www.philipsheldrake.com/2011/01/content-an-illustrated-history


http://www.philipsheldrake.com/2011/01/content-an-illustrated-history


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The authors of the Cluetrain Manifesto asserted back in 1999 that the Internet allows markets to revert to the days when a market was defined by people gathering and talking among themselves about buyer and seller reputation, product quality and prices.

This was lost for a while as the scale of organizations and markets outstripped the facility for consumers to coalesce.


The Cluetrain Manifesto – http://www.cluetrain.com



http://www.cluetrain.com/


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We are more influenced by the 150 nearest to us

than by the other six or so billion combined





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May have been a relevant axiom for 20th Century, but now…


Influence Strategy and Execution, Philip Sheldrake, Marketing Magnified eJournal, June 2011, CMO Council http://www.marketingmagnified.com/2011/june


Perception is reality

The real-time social enterprise must, by

nature, be authentic.You can’t fake it.

Reality is perception

http://www.marketingmagnified.com/2011/june


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If you could go back to the mid-90s and offer a marketer a little box that could sit on her desk and let her listen in on thousands of customer conversations and participate in those discussions regardless of geography or time zone, it would appear so far-fetched that she’d probably call security.


The Social Web Analytics eBook 2008, Philip Sheldrake


Social analytics


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And yet in 2011: “most CMOs pay

more attention to markets than individuals.”


From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011

Key sources to understanding individuals

in yellow.

http://www.ibm.com/cmostudy2011

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Everything an organization does occurs in the context of a changing world, in a dynamic interplay with every entity

around it


Align Your Stakeholder-Facing Functions with an Influence Strategy, Philip Sheldrake, Balanced Scorecard Report, July-August 2011, Vol 13 No 4, Harvard Business Publishing


No organization is an island

Organizations must cultivate a sensitivity to the new dynamic (one that’s superior to competitors’) and sharpen their ability to interpret and respond

to the myriad communication flows issuing from all sides


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//The info tech explosionTWO

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Phones are the most personal of consumer

electronic devices. They rank with keys and money

when going out. They become an extension of

their owner and their loss is mourned, literally.

It keeps you connected with those far away, and

disengaged from strangers nearby.




- address book- diary

- digital messenger- web browser

- games machine- music player- video player

- navigator- video & stills

camera

... and, of course,a phone


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The Internet of ThingsA public and private nervous system for the planet


Internetome Conference, London, 2010



Electronic devices (washing machines, air conditioning units and cars)Electrical devices (lighting, electric heaters, and power distribution)Non-electrical objects (food and drink packages, clothes, and animals)Environmental sensors(measuring such variables as temperature, noise, moisture)


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Data paucity was a problem of the 20th Century.Big data is the problem and opportunity of the 21st.




I believe that a future where so much data is collected about me and owned by others is nothing short of dystopian.

We need a new privacy framework.And we need streams banks.


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– when individuals can market their needs or desires, either directly or anonymously, via a streams bank or other broker, to organizations interested in meeting that need or desire.


The Social Web Analytics eBook 2008, Philip Sheldrake


Buyer marketing

What’s the impact on advertising when we can pull customized ‘tenders’ to us on demand for anything and everything we can imagine?



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Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation.




Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge.


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“Most CMOs are underprepared to manage the impact of key changes in the marketing arena.”



Data explosion& Social media


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//The way we contemplate, design, communicate and execute strategy

THREE

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Kaplan and Norton developed the strategy map tool for the alignment of operations with strategy, and the popular* Balanced Scorecard framework to augment the lagging (financial) indicators of business success with non-financial drivers of future financial performance.


Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN: 9780875846514

* http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx


Useful for dealing with business based on tangible assets. Essential for those built on intangibles.

http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx

http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx


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Return on investment


Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Robert S. Kaplan and David P. Norton, ISBN: 978-1591391340


“The strategy map identifies the specific capabilities in the organization’s intangible assets – human capital, information capital, and organization capital – that are required for delivering exceptional performance in the critical internal processes.”

“… each investment or initiative is only one ingredient in the bigger recipe. Each is necessary, but not sufficient. Economic justification is determined by evaluating the return from the entire portfolio of investments in intangible assets that will deliver the ROI from [the strategic imperative].”

And this applies to influence activities too.


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Square brackets added here.

And yet: “CMOs believe ROI on marketing spend [in isolation?] will be the number

one method for determining the marketing function’s success.”


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The social enterprise

//The Business of Influence




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‘Socializing the enterprise’ demands more than just procuring some social

tools. It demands a CEO-led organizational redesign.




A framework for all influence activities, for the social media, info tech and

business strategy of the 21st Century.

It demands a new and simple model, devoid of ‘baggage’, to think about what

we’re trying to achieve.


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The Six Influence Flows



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Comparing market research and continuous engagement


The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.4

Market research Continuous engagement

Ad hoc or regular intervals Continuous

One-way (and often needs the carrot of a prize, gift or payment)

Two-way (mutually rewarding)

Unemotional Emotional

Independent of loyalty Inculcates brand loyalty

Tight focus Wide focus

Sequential parameters Multi-parametric

Designed to achieve statistical confidence

Emphasis on detecting weak signals

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Influence-centricity

1. Focusing on the influenced

Related to the emphases of Net Promoter Score (albeit focused on all stakeholders that have been influenced or influenced others, rather customers that would recommend us).

Outcome rather than output oriented.



The term ‘the influenced’ means those who have done something they otherwise wouldn’t have done (e.g. buy your product) and is not a contraction of ‘the positively influenced’, i.e. those who have come round to our point of view, as it might be in more casual parlance.

2. Tracing influence

Understanding and learning from how influence has happened.

Not hung up on finding ‘key influencers’, but rather it’s about:

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The Influence Scorecard

How can we systematically learn from and manage influence flows?

How do we define, develop, and execute a consistent and coherent influence strategy?

How do we prioritize investments in influence-related human, information, and organizational capital?



Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.

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The Influence Scorecard /2

The Influence Scorecard serves as both the methodology for defining influence strategy and the tool for executing it.

It’s a subset of the Balanced Scorecard, containing all the influence-related objectives and metrics extracted from their functional silos.

Helps management ensure that the potential to influence and be influenced is exploited cohesively and consistently throughout the organization.



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In conclusion

Today, influence activities are:


– Spread, uncoordinated, across functional silos

– Encompass only some aspects and subsets of the Six Influence Flows and the Influence Scorecard

– Defined in the context of 20th Century technology, media, and articulation of and appreciation for business strategy.

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In conclusion

Tomorrow, your influence strategy must:


– Take best advantage of social media, new info technologies and best practice performance management

– Integrate marketing research, systematically

– ‘Socialize the enterprise’, systematically

– Drive business performance.

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The ease and effectiveness with which we manage and learn from influence flows is

integral to the ways all stakeholders interact with organizations to broker mutually valuable,

beneficial relationships.


The Business of Influence, Philip Sheldrake, Wiley, 2011http://www.flickr.com/photos/philip_sheldrake/3820770698



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The Business of Influence: Reframing Marketing and PR for the Digital Age

Philip Sheldrake, Wiley, May 2011ISBN 978-0470978627

www.influenceprofessional.com#infpro@sheldrake

http://www.influenceprofessional.com/